Discounted luxury retailer Rue Gilt Groupe announced plans to IPO in the United States
(Bloomberg) – Rue Gilt Groupe, an e-commerce retailer, is in the early stages of preparing for an IPO, according to people familiar with the matter.
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The company, led by CEO Mark McWeeny, is working with underwriters ahead of its public market debut, said one of the people, who asked not to be identified to discuss private plans.
Rue Gilt Groupe seeks to “provide the most attractive, low-cost online style destinations connecting world-class high-end and luxury brands to next-generation shoppers,” according to its website. Its flagship sites, Rue La La and Gilt, offer more than 5,000 luxury and premium brands and offer discounts of up to 70% on retail prices. It reaches a “highly coveted” demographic, as its website shows.
In 2019, Simon Property Group Inc. announced that it had acquired a 50% stake in the company, which is backed by billionaire Michael Rubin, for $ 280 million. Simon and Rue Gilt Groupe operate ShopPremiumOutlets.com, another low cost e-commerce site.
At the time, Rue Gilt Groupe said it had over 25 million members and was on track to surpass $ 1 billion in annual sales. A year earlier, in 2018, Rue La La agreed to acquire Gilt from the Hudson’s Bay Company.
A spokesperson for Rudin referred questions to Rue Gilt Groupe, and representatives for Simon and Rue Gilt Groupe did not respond to requests for comment.
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